PCP
Car Finance

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Rates from 7.9% APR. Representative APR 20.7%
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Rates from 7.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 20.7%, an annual interest rate of 20.7% (Fixed) and a deposit of £0.00, the amount payable would be £168.48 per month, with a total cost of credit of £3,608.67 and a total amount payable of £10,108.67.

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

What is PCP?

PCP is a type of car finance loan that lets you decide whether you want to buy the car, give it back, or trade it in for a new one when your agreement ends.

Plus, unlike HP, your PCP loan doesn’t have to cover the full cost of your car. Instead, you only need to borrow the amount the lender thinks your car will lose value while you have it.

This means you’ll typically have lower monthly payments than you might with other car finance options, but remember, you won’t automatically own the car when the agreement ends.

PCP, or Personal Contract Purchase, could be a great choice for you if you like to change cars regularly, don’t drive a lot of long distances, and want to keep your monthly payments low.

How much you’ll pay each month will depend on:

  • The size of your deposit
  • The car you’ve chosen
  • The cost of your car
  • The interest rate
  • The number of miles you drive
  • How much the lender expects the car to be worth at the end of your agreement

What is PCP Car Finance?

Watch this short video to find out how personal contract purchase works, the pros and cons, and whether it could be the right choice for you.

What happens at the end of a PCP agreement?

At the end of your PCP agreement, you’ll have a decision to make.

You can either give the car back to the dealer, buy it with a one-off balloon payment, or (if you have equity left in the car) trade it in for a new PCP car deal – the choice is yours!

What is a balloon payment?

If you do decide to buy the car at the end of your PCP deal, you’ll need to pay a balloon payment. No, it’s not something that floats away. Balloon is just the term that’s used to describe this large final payment. It’ll be based on the Guaranteed Minimum Future Value (GMFV) of your car and could range from a few hundred to a few thousand pounds.

Sound good? Be aware that terms and conditions will apply – you’ll need to agree to a set mileage and not damage the car to avoid paying extra charges.

How does PCP finance work?

It’s as easy as 1, 2, 3…

1. The deposit

0 deposit options are available too. 

2. The amount you borrow

This’ll be the amount the lender thinks your car will lose
value while you have it, not the full value of the car.

3. The balloon payment

You’ll need to pay this to buy the car at
the end of your car loan agreement. 

What are the pros and cons of PCP?

Pros: 

  • Monthly payments might be lower than they would with other car loan options
  • You have options – you can pay the balloon payment and buy the car, give it back, or trade it in for a new one
  • No surprises – your monthly payments are fixed
  • You can access newer used cars – no getting stuck with an old banger!

Cons: 

  • You won’t own the car during your PCP loan period or when it ends (unless you pay the balloon payment)
  • You’ll be charged if you drive more miles than you agreed to or damage the car
  • You might need a deposit
  • If the GMFV is very close to the actual car value, you won’t have a lot of positive equity left to use in a new agreement

Is PCP the right option for me?

A PCP car deal could work for you if:

  • You like to change car regularly
  • You’re a careful driver
  • You don’t need to drive a lot of long distances

Looking for more details? Head over to the blog where we get under the hood of PCP car finance with our complete guide.

Why come to us for your PCP car finance?

For us, used car finance is all about helping people improve their everyday lives.

Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we work to get the right deal for you.

With our panel of lenders, we can look to find PCP car loans for people with good credit, bad credit, and somewhere-in-between credit.

Plus, you’ll have a dedicated account manager on hand to help you through the process.

What’s next? How no deposit car finance works

Whether you’re looking for a Peugeot on PCP, a Honda on HP, or a personal loan for a Land Rover, we could help!

It all starts with a quote. If you’re approved in principle, your account manager will then give you a call to talk through your options. No strings attached. They can answer any questions you have and give you access to our car search – a treasure trove of over 120,000 used cars ready and waiting to find a home. Found a car elsewhere? We can still help – just let your account manager know.

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* The UK's number one online car finance broker by unique users to the website. Based on Hitwise data – 1,746,657 to CarFinance 247 vs. 666,020 for nearest competitor. January to December 2019.

96% of our customers recommend us: † Based on feedback left on independent review site Reviewcentre. May 2019.

CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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